Whether you are a current or prospective homeowner or renter, and regardless if you are considering buying or selling, it is important to know how the current state of the market impacts your daily decisions while living in Austin. We understand the importance of providing you with a transparent outlook on the health of the local market so that you can make informed real estate-related decisions. Our blogs are here to provide you with the data to create clarity. Read below to gain valuable market insights and connect with one of our local agents today!
After a decade of low-interest rates and rising home values, 2022 continues to be a year of transition. Spiked mortgage rates and elevated prices have moderated the peak frenzy of buyer demand (pending listings), which has slowed the pace of sales. As the pace of sales has eased, the inventory has grown.
The growth in housing inventory was caused by an influx of recent homeowners listing their homes for sale (new listings), and homes are staying on the market longer (active listings). In October 2022, homes averaged 47 days on the market in Austin. Realty Austin listings are selling on average in 30 days. Read our Austin Housing Market Report blog for more details.
Months of Inventory & Average Days on Market (2016-2022)
Source: Austin Board of REALTORS®, Austin-Round Rock Metropolitan Statistical Area October 2022.
Inventory has risen quickly, with the number of homes on the market for sale increasing 180% year over year. However, this is beginning to flatten as the number of new listings fell 13% year over year, and listings withdrawn from the market surged up 244% from a year ago. Additionally, pending sales fell 40% compared to a year ago, so unsold inventory (active listings) will take more months to absorb. With sales activity tumbling 29% compared to this time last year, monthly inventory levels increased to 3.2 months, up 2.2 months compared to October 2021.
New, Active & Pending Listings (2016-2022)
Source: Austin Board of REALTORS®, Austin-Round Rock Metropolitan Statistical Area October 2022.
The question on everyone’s mind is, will there be more inventory in 2023? Read why economists at Fannie Mae say it is not likely there will be such an influx of inventory in 2023.
PRO TIP: You haven’t missed your window if you want to sell. With inventory still historically low, listing now will allow you to get the jump on other sellers who might be holding off until after the holidays and the start of the new year.
BOTTOM LINE: Now is the time to talk through your options. Trying to time the market can present challenges. Sit down with a local real estate expert and discuss your home search or home sale goals so you can have the insights you need to make the best possible move forward. Learn how these small bright spots in our cooling market present unique opportunities to buy or sell.
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